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February 14, 2017/InvestmentOne Research
- Continued sell-off in bellwether consumer names drove the Nigerian bourse to a negative close, as the ASI shed -0.84% today to berth at 25,032.17pts. Similarly, the index market capitalisation also shrank by c.N74b to berth at c.N8.66trillion.
- Sell pressure on NB (-136pts), NESTLE (-56.31pts) and ZENITHBANK (-54.84pts) was largely responsible for index performance offsetting gains in ETI (+16.62pts), FBNH (+11.49pts) and FO (+10.24pts).
- Market breadth index (+0.01x) however turned positive as 15 stocks led by FO (5%) advanced against 14 stocks topped by NB (-4.99%) which closed lower.
- Furthermore, value turnover strengthened by +39% while volume traded was up by 2% as investors exchanged over 144m units of stocks worth c.N1.91b in 2,868 deals. DUNLOP and STERLINGBANK were the most actively stocks with 21m and 16m units respectively.
- Following over -5% and -3% decline in both NB and NESTLE, Consumer Goods tracker fell by -3.29% while the Banking tracker was down by -0.75% dragged by -3.51% and 1.47% decrease in ZENITHBANK and FCMB. On the positive, the Oil &Gas tracker recorded a marginal gain of +0.84%, supported by +5% gain in FO.
- Given investors’ concern regarding the weak macro backdrop, we expect the ASI to remain volatile in the near term. That said, we however advise investors to lengthen their horizons and build position in quality names.
